100K in student loan debt. Monthly minimum payment of $1000. All loans have variable rates. Rates are as follows 70K at 2.92%, 16K at 3.0% and 14K at 3.5% (just refinanced the 70K down from 6.8%!). I had been throwing $2000 a month at the student loans to pay off the stupid high rate of 6.8, but now that it is about 3.2%. I was planning on increasing my monthly payments by the entire amount of my raise, expected to be about $500 extra each month.
This means that I have about $1,500/month that I need to find a home for. Do I continue to work away at the student loans and become debt free by my 30th birthday, or do I save it looking for higher returns elsewhere?
Single,
gross income (job/bonus/rental income) of ~ 95k,
7% contributions to 401k,
emergency fund ~ 5k,
no cc debt,
I think I know what your answer is going to be, and I just want to confirm that I am doing the right thing.
Thanks all.